Debt crisis: Murcia could request €700m from Spanish government [Telegraph]
August 21, 2012 Leave a comment
Spain’s Murcia region could request up to €700m (£550m) from the central government to keep it afloat, amid growing concern over the state of the regions’ finances.
The tiny autonomous region, home to 1.4m people, on Spain’s southeastern coast announced last month that it would seek a bail out from an €18bn special fund set up by Madrid to help its indebted regions.
Juan Bernal, the Economy minister of Murcia’s regional government, said at the weekend that his region would at first seek around €300m, possibly as soon as September, to help meet outstanding debts.
It may then request a further €400m to help fund loans maturing in December.
Spain’s indebted autonomous regions have been locked out of international debt markets and are struggling to refinance around €36bn euros in total debt this year.
Murcia became the second of Spain’s 17 regions to indicate that it will seek funding, following the path of Valencia, which is estimated to need up to €3.5bn euros from the fund.